This is why the government should never control the internet
By Robert M. McDowell
Tomorrow is the deadline for the public to comment on the Federal Communications Commission’s (FCC) attempt to regulate the Internet under the seemingly innocuous moniker of “net neutrality.” The architect of this movement, and the man who coined the term “net neutrality,” is Columbia law professor Tim Wu. Unfortunately, he has proved to be immensely influential among regulators.
Net neutrality rules have been sold for a decade as a way to keep the Internet “open and free” by keeping Internet service providers (ISPs), such as phone and cable companies, from blocking or degrading Web sites. Its advocates have argued that ISPs have an economic incentive to act anti-competitively toward consumers and competitors. In a common hypothetical they cite, ISPs would slow — or buffer — traffic for Netflix unless it unfairly pays for more access points, or “off ramps,” and better quality of service.
In truth, however, market failures like these have never happened, and nothing is broken that needs fixing. If consumers were being harmed by ISPs, ample antitrust, competition and consumer protection laws already exist to fix the problem. And major broadband providers have pledged, in their terms of service, to keep the Net open and freedom-enhancing. Why? Because it is good business to do so.
Additionally, Netflix produces upwards of 34 percent of the Net’s traffic at peak times. It can clog any pipe it touches. That torrent of traffic imposes delivery costs that Netflix would prefer to pass on to others. But the market is sorting out these growing pains as the open Net grows, just as it has successfully from the beginning. (My views on this subject long predate my affiliation with the Hudson Institute, but in the interests of full disclosure: Hudson receives financial support from media, technology and telecom companies, as well as foundations, including those on both sides of the net neutrality debate.)
